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Global catastrophes cause $7 billion in insured losses during first quarter


April 9, 2014   by Canadian Underwriter


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Natural catastrophes globally caused roughly $7 billion in insured losses during the first quarter of the year, and $20 billion in economic losses, according to the latest recap report from Aon Benfield’s catastrophe model development arm Impact Forecasting.

Severe winter weather caused damage across the United States last month, including one storm in the Carolinas and Virginia that caused total economic damages of about $100 million, and an expected insurance payout of more than $50 million, the report says.

Overall, the U.S. winter season saw economic damages of $5.7 billion, with at least $2.6 billion covered by insurance, according to Impact Forecasting.

Europe also experiences its costliest windstorm season since 2009-2010, with insurers expected to pay out more than $4.0 billion in storm-related claims, according to the firm.

“Despite the nearly 70 natural disaster events experienced globally during the first quarter of 2014, the financial losses attributed to these events were largely negligible to economies and insurers,” Steve Bowen, associate director and meteorologist within Aon Benfield’s Impact Forecasting team said in a statement.

“The preliminary tallies of nearly $20 billion in economic damages and $7.0 billion in insured losses were both close to the level of losses sustained in 2012 and 2013, but well below those seen in 2010 and 2011,” he said.

“However, while this year’s first quarter losses were manageable for insurers, it is worth remembering that the second and third quarters are historically the costliest for the industry as severe thunderstorms, floods, droughts, and tropical cyclone activity become more prevalent.”

Also in March, a massive mudslide killed at least 33 people in Washington state, when nearly 50 homes and other buildings were destroyed, the report says. That event caused economic damages of around $10 million.

Significant floods also occurred in South Africa, killing 32 people and causing economic damages of $85 million, according to Impact Forecasting.

Severe drought in Brazil and Pakistan continued in March, the report notes.


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